What Was the Stamp Duty Holiday?
Benjamin Thompson Kirk
What Was the Stamp Duty Holiday? In July 2020, Rishi Sunak, the UK Chancellor of the Exchequer, introduced a stamp duty holiday to help property buyers and boost the UK real estate market as part of government efforts to counter the economic impact of the COVID-19 pandemic. When someone purchases a property above a certain threshold in England or Northern Ireland, they have to pay Stamp Duty Land Tax. Scotland and Wales operate slightly different systems, with buyers paying Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales. The threshold for SDLT is currently £125,000, or £300,000 for first-time buyers.
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From July 1st, 2021 to September 30th, 2021, SDLT was reintroduced in transactions where the property price exceeded £250,000. On October 1st, 2021, SDLT reverted to pre-holiday rates.
The stamp duty holiday effectively negated the need for purchasers to pay SDLT on transactions where the value of the property was £500,000 or less. The UK Government’s aim in introducing the scheme was to stimulate the property market, encouraging more people to buy, sell, and renovate, and in turn supporting jobs and driving economic growth. SDLT returned to its normal rate in stages. From July 1st, 2021 to September 30th, 2021, SDLT was reintroduced in transactions where the property price exceeded £250,000. On October 1st, 2021, SDLT reverted to pre-holiday rates.
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